California State Lands Commission FEBR U ARY 7
California State Lands Commission FEBR U ARY 7, 2017 CA LEN DA R ITEM NUMBER: 68 KENN ETH FOSTER LAND MANAGEMENT DIVISION CA LIFORNIA STATE LANDS COMMISS ION 1 Serving the Public Trust Since 1938
Proposed Benchmark Update • 2017 Category 1 Colorado River Benchmark Applies to Sovereign Lands in San Bernardino, Riverside, and Imperial Counties 2 Serving the Public Trust Since 1938
Benchmark Overview • Used to establish uniform rental rates in specific geographic areas with large concentrations of similar facilities (2 CA ADC § 2003(a)(5)). • Improves consistency, transparency, and predictability throughout that geographic region. • Improves staff efficiency in setting and adjusting rent for large numbers of leases with similar facilities. • Generally updated by Commission appraisal staff every five years. 3 Serving the Public Trust Since 1938
Commission Benchmark Locations 4 Serving the Public Trust Since 1938
Commission Benchmark Rates 5 Serving the Public Trust Since 1938
Current 2012 Benchmark Rate Category 1 Colorado River Rental Rate: $0. 146 per square foot 6 Serving the Public Trust Since 1938
Proposed 2017 Benchmark - Category 1 Colorado River 7 Methodology: Calculations: • Collected 5 surveys of marina slip lengths and monthly rental rates from marinas located on the Colorado River in San Bernardino, Riverside, and Imperial Counties. Average berth length: 24 feet Average monthly rental rate: $7. 02/lf Submerged land needed: 590 sf • Multiplied average linear foot berth length and average monthly rental rate by 12 to determine annual income rate. 24 ft x $7. 02/lf x 12 = $2, 022 • Multiplied annual income rate by 5% to account for portion of marina income attributable to submerged land. $2, 022 x 0. 05 = $101 • Adjusted income rate divided by square footage area needed to accommodate average berth length. $101/590 sf = Serving the Public Trust Since 1938 $0. 171/sf
Proposed 2017 Benchmark - Category 1 Colorado River 8 Methodology: Calculations: • Collected 5 surveys of marina slip lengths and monthly rental rates from marinas located on the Colorado River in San Bernardino, Riverside, and Imperial Counties. Average berth length: 24 feet Average monthly rental rate: $7. 02/lf Submerged land needed: 590 sf • Multiplied average linear foot berth length and average monthly rental rate by 12 to determine annual income rate. 24 ft x $7. 02/lf x 12 = $2, 022 • Multiplied annual income rate by 5% to account for portion of marina income attributable to submerged land. $2, 022 x 0. 05 = $101 • Adjusted income rate divided by square footage area needed to accommodate average berth length. $101/590 sf = Serving the Public Trust Since 1938 $0. 171/sf
Proposed 2017 Benchmark - Category 1 Colorado River 9 Methodology: Calculations: • Collected 5 surveys of marina slip lengths and monthly rental rates from marinas located on the Colorado River in San Bernardino, Riverside, and Imperial Counties. Average berth length: 24 feet Average monthly rental rate: $7. 02/lf Submerged land needed: 590 sf • Multiplied average linear foot berth length and average monthly rental rate by 12 to determine annual income rate. 24 ft x $7. 02/lf x 12 = $2, 022 • Multiplied annual income rate by 5% to account for portion of marina income attributable to submerged land. $2, 022 x 0. 05 = $101 • Adjusted income rate divided by square footage area needed to accommodate average berth length. $101/590 sf = Serving the Public Trust Since 1938 $0. 171/sf
Proposed 2017 Benchmark - Category 1 Colorado River 10 Methodology: Calculations: • Collected 5 surveys of marina slip lengths and monthly rental rates from marinas located on the Colorado River in San Bernardino, Riverside, and Imperial Counties. Average berth length: 24 feet Average monthly rental rate: $7. 02/lf Submerged land needed: 590 sf • Multiplied average linear foot berth length and average monthly rental rate by 12 to determine annual income rate. 24 ft x $7. 02/lf x 12 = $2, 022 • Multiplied annual income rate by 5% to account for portion of marina income attributable to submerged land. $2, 022 x 0. 05 = $101 • Adjusted income rate divided by square footage area needed to accommodate average berth length. $101/590 sf = Serving the Public Trust Since 1938 $0. 171/sf
2012 Vs 2017 Rate Comparison For a Representative General Lease – Recreational and Protective Structure Use in the Rio Buena Vista Community in the City of Needles. 11 2012 Benchmark 2017 Benchmark 965 sf x $0. 146/sf = $140 965 sf x $0. 171/sf = $165 Serving the Public Trust Since 1938
Recommendations Staff recommends approval of: The 2017 Category 1 Colorado River Benchmark rate of $0. 171 per square foot, effective February 7, 2017. 12 Serving the Public Trust Since 1938
Thank You & Questions §For more information: § Kenneth Foster, Public Land Manager, Southern California Region § Kenneth. Foster@slc. ca. gov; 916 -574 -2555 13 Serving the Public Trust Since 1938 www. slc. ca. gov
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